How Service New Brunswick Holds Your Money Hostage!
Ben Schmidt of www.benschmidt.tv a Fredericton NB and Oromocto NB Real Estate Agent video blogs about buying a non-owner occupied home, when you will owner occupy it
So an interesting thing my buyer and I ran into the other day that you all should be aware of. If you are looking to a buy a home that you want to live in, leaning you aren't going to rent this home. It will be your personal residence. The home you find may still be non-owner occupied. It could be currently rented out. What that means is that, the current owner is paying double tax.
When you close the property you need to adjust for the taxes paid by the current vendor. So you will actually need to pay double the amount of tax you actually should owe. Let's just say you bought a property with a tax levy of $5000 because it's non owner occupied. That tax bill will now be $2,500 for you. And lets say you closed at the end of June so you will leave in the property for 50% of the year. You owe $1250, BUT the previous owner paid double tax so aid $2,500. That is actually what you will have to come up with on closing. You then apply for your credit on next years property tax levy!
I hope that makes sense, if it doesn't give me an email.
If you have any questions about property taxes or a question for a Realtor in general give me an email at ben.schmidt@me.com